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AFBF: EPA’s water rule broader, more onerous, than proposal BY DIRCK STEIMEL The new water rule issued by the Environmental Protection Ag­­ ency (EPA) is even broader than the preliminary rule the agency first proposed in 2014, according to a new analysis by the American Farm Bureau Federation (AFBF). The rule threatens to add more risk and uncertainty for farmers, as well as creating permitting requirements for normal farming activities, such as fertilizing and applying crop protection, and rais­ es the potential for strict enforce­

ment actions, it said. “Our analysis shows yet again how unwise, extreme and unlaw­ ful this rule is,” said Bob Stallman, AFBF president. “Our public af­­ fairs specialists and legal team have assembled the best analy­ sis available anywhere, and their conclusions are sobering: Despite months of comments and innu­ merable complaints, the Waters of the U.S. (WOTUS) proposal is even worse than before.” The final “Waters of the U.S.” or WOTUS rule, issued in late May by the EPA and the U.S.

Army Corps of Engineers, was issued to redefine which waters are covered under the Clean Water Act. It will go into effect 60 days after it is published in the Federal Register.

Opposed from the start The water rule, which was first proposed in 2014, has been strongly opposed by the Iowa Farm Bureau Federation, a diverse group of other state and nation­ al farm groups, small business groups and a bipartisan group of national and state lawmakers.

The U.S. House easily passed a measure that would prohibit the EPA from enacting the WOTUS rule, and a similar bill is mov­ ing through the U.S. Senate. Last week, the Senate Environment and Public Works Committee passed a measure that would require the Obama administration to rewrite the rule after consulting local and state governments. The AFBF analysis of the WOTUS rule shows that in draft­ ing the rule, the EPA has vastly expanded the area covered by the rule in several areas.

House passes TPA, but misses opportunity to finish trade bill The U.S. House late last week passed a measure to pro­ vide Trade Promotion Authority (TPA) to President Barack Obama, but failed to pass an accompany­ ing bill, called Trade Adjustment Assistance (TAA). House leadership was expect­ ed to bring the TAA bill back to the floor sometime this week in an effort to finalize the entire measure, which has already been approved in the U.S. Senate. Final passage of TPA is essen­ tial to Iowa farmers, said Craig Hill, president of the Iowa Farm Bureau Federation. “Currently, one in every three acres of farmland is planted for con­ sumers overseas,” Hill said. “Clearly trade is very important to all Iowans, since agriculture is an essential part of that overall export picture. TPA is the essential first step to passing a trade deal which opens markets and increases demand for agricultural products overseas. “We support continued biparti­ san efforts to find common ground to finalize TPA,” Hill added. ­ Other commodity groups ex­ pressed similar hope that Congress will ultimately pass the TPA mea­ sure, which is being pushed by Obama. “This legislation would bring us one step closer to open markets and greater access to millions of consumers living beyond our bor­ ders,” said Chip Bowling, presi­ dent of the National Corn Growers Association. American Soybean Association president Wade Cowan said: “The House’s disagreements over trade adjustment assistance threaten to stand in the way of the fast track authority we need to finalize an agreement in the Trans-Pacific Partnership that includes vital export markets for U.S. soybeans and meat products, as well as the developing markets.”

A key expansion is the broad­ ening of the definition of a tribu­ tary that is subject to regulation. The new definition now in­ ­ cludes landscape features that may not even be visible to the human eye or may have existed historically, but are not present now, the AFBF analysis shows. In the final rule, there would be no need for the presence of an actual bed, bank and ordinary high water mark, but only the “presence of physical indicators” of those char­ WOTUS PAGE 2

ISU poll shows farmers aware of water plan Iowa farmers are aware of the Iowa Nutrient Reduc­ tion Strategy and are making water quality a priority. STORY ON PAGE 5

Near-term issues cloud bright pork export view Issues surrounding sales to China and competition from Europe and Canada are affect­ ing pork exports. STORY ON PAGE 6

Planting pollinators to aid bees, butterflies Alan Zellmer, left, gave a group of local teachers a tour of his family’s cattle farm, A to Z Feeders near Atlantic, last week at a professional development workshop for educators organized by county Farm Bureaus in southwest Iowa. The workshop aimed to provide teachers with ideas for how they can incorporate agriculture into their lesson plans.

Pioneer employees take time out to plant milkweed and hope the idea spreads. STORY ON PAGE 7

PHOTO/TERESA BJORK

Giving teachers a first-hand look at Iowa agriculture BY TERESA BJORK

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a s s   C o u n t y   Fa r m Bur­­eau member Alan Zellmer welcomed more than a dozen local teachers to his family’s cat­

tle farm, A to Z Feeders, near Atlantic last week. Zellmer told the teachers that Iowa farmers need employees who are not only comfortable using today’s technology, but are also excellent communicators and

are good with numbers — without depending on smartphones for the answers. “We have a great need for math, reading and writing. That AG EDUCATION PAGE 2

Look for the June Livestock section in this week’s edition of the Spokesman. COPYRIGHT 2015

PLAN SET FOR EXPANSION OF U.S. HIGHWAY 20 O’CONNELL CITED AS JUNE GOOD NEIGHBORS The Iowa Transportation Commission last week voted to use $286.4 million to finish expanding U.S. Highway 20 to four lanes in northwest Iowa. The expansion will complete the northern Iowa highway by making it a four-lane route through in Woodbury, Ida and Sac coun­ ties. Highway 20 is currently two-lane from Moville in Woodbury County to Early in Sac County. The work includes $68.3 million for 12 miles of work in Woodbury County, which is scheduled to be done by 2018, $138.1 million for 17 miles in Ida County for 2016 and $80 mil­ lion for 11 miles in Sac County in 2017. The improvements are part of a five-year transportation plan approved after the Iowa Legislature in February passed a trans­ portation improvement measure financed by an increase in the fuel tax.

Pat and Marilyn O’Connell of Delaware County will be recognized as the June recipients of the Wergin Good Farm Neighbor award on June 18 at their farm in Earlville. The O’Connells have dairy and beef cows and raise corn and alfalfa. This past year, they were recognized with the Most Improved Herd Award for Delaware County. The O’Connells are very involved in their local community and serve in leadership positions on the county’s Dairy Council and DHIA board. “This family has solid values, and never a stranger did pass they didn’t promote dairy and friendship to. Many countless hours are put toward their farm, family, commu­ nity and Delaware County Dairy Promotion Board,” says Chris Freland of Midwest Dairy, who nominated the family for the award.


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JUNE 17, 2015 IOWA FARM BUREAU SPOKESMAN

AG EDUCATION FROM PAGE 1

is probably one of the biggest demands that we have here with our employees,” Zellmer said. “It all comes back to the simple things of being able to write things down so I can read them and do the simple math. If you (teachers) can keep those basics in our system, it will help us dramatically here.” The teachers toured Zellmer’s farm for a professional development workshop designed to help educators incorporate agriculture into their curriculum. It was the first-ever teacher workshop organized by county Farm Bureaus in the southwest Iowa region. Jasper and Marshall County Farm Bureau leaders also co-hosted their first agriculture workshop for educators last week in eastern Iowa. And in July, two more teacher workshops — also first-time events — are planned in Moville and Fairfield, organized by Farm Bureau Ag in the Classroom (AITC) coordinators in northwest and southeast Iowa. These workshops are in addition to the professional development courses for educators hosted annually by the Polk County Farm Bureau and county Farm Bureaus in northeast Iowa.

Building knowledge Stacie Euken, Cass County Farm Bureau president, says her region was inspired to organize the teacher workshop after attending an AITC coordinators networking event last fall, hosted by the new Iowa Agriculture Literacy Foundation (IALF). Launched in spring 2014 by the state’s farm, education and business community, the IALF aims to help Iowans understand more about how food is grown and raised. The IALF offers training, educational materials and financial support for teachers and county AITC volunteers to introduce ag-based curriculum

Mike Pellett, right, of AgriVision Equipment in Red Oak described the different pieces of farm machinery on display at the John Deere dealership during an ag literacy workshop for teachers last week. Pellett told the teachers how Iowa farmers use precision agriculture technology to minimize their environmental impact. PHOTO/ TERESA BJORK

into Iowa schools. “We can help counties and give them a boost and provide what they need,” explained Cindy Hall, the IALF’s education program manager.

Learning destinations By hosting the workshops locally, county AITC coordinators can connect teachers with ag learning destinations, farmers and ag experts in their own communities, Hall noted. Most of the educators at the southwest Iowa workshop teach in elementary classrooms, although a few were high school ag education teachers looking for new curriculum ideas. “Some of the (teachers) said they grew up on a farm or have a family member who farms, but they didn’t know how to teach

it or they didn’t have time to teach it in the classroom,” Euken said. “But you can incorporate (agriculture) into all the other lessons — the math classes and the literature classes — not just the ag curriculum. You can work it into STEM (science, technology, education and math) curriculum.” Teachers could earn license renewal credits or graduate degree credits for attending the southwest Iowa ag workshop. But unlike most professional development courses, where teachers sit in a meeting room all day, the summer ag workshops are hands-on. During the southwest Iowa workshop, teachers toured Zell­ mer’s cattle feedlot and Milk Unlimited Dairy in Atlantic. They also traveled on a school bus

to Red Oak, where they visited United Farmers Mercantile Co-op and learned how Iowa corn is shipped all over the world for a variety of uses. In addition, they stopped at AgriVision, a John Deere dealership in Red Oak, to look at farm machinery up close and discover how farmers use precision agriculture technology in the fields.

Integrating agriculture Julie Karns, a K-2 language arts teacher at Clarinda Community Schools, said she signed up for the summer workshop because she doesn’t know a lot about agriculture but wants to learn more. “I’m not a farm person, but a lot of our kids are,” Karns said. “I do a lot of writing activities, and I think writing is probably a place where I can really integrate

ponds, the AFBF analysis said. But the exclusions apply only to features “created in dry land” and that doesn’t actually mean land that looks dry. Instead, regulators will have the power to determine what is “water” and what is “dry land,” it said.

WOTUS FROM PAGE 1

acteristics, it said. The rule would allow EPA employees, without ever stepping on the land, to make those determinations using “desktop tools” such as satellite maps, historical records and LIDAR, a remote sensing method used to examine the surface of the Earth. That creates tremendous uncertainty for farmers, landowners and small businesses, Stallman said. “Now, what that means for landowners, like myself, is land that does not appear to the naked eye to have a bed, bank or an ordinary high water mark could be determined by someone in an office hundreds or thousands of miles away to be a federally regulated water of the U.S.,” he said.

Defining ditches The agency has also defined many ditches, which hold water only temporarily after rains, as tributaries and makes it virtually impossible to know which ones are covered under the rules, the AFBF analysis shows. The rule says ditches that only flow at certain times of the year are excluded from the rule only if they are not excavated in a tributary or

(agriculture).” Union County Farm Bureau president Emily Wuebker, who is also a third-grade teacher in East Union Elementary in Afton, said the workshops also help raise awareness among teachers about the many STEM careers in agriculture. “When people think ag, they think farming. But you don’t have to farm to have a career in ag. Even at (Zellmer’s) feedlot, we met people there who have master’s degrees,” Wuebker said. “If we are going to keep our children, our youth, in our state, we need them to be aware of everything that agriculture can provide them as a career.” For more information about the IALF and upcoming teacher development workshops, visit www.iowaagliteracy.org.

Prairie Pothole region

The Environmental Protection Agency’s Waters of the U.S. rule requires a case-by-case analysis of land and water within 4,000 feet of all perennial, intermittent and ephemeral streams in the National Hydrography Database. For Iowa, that would include the areas in red, or 96.7 percent of the state. MAP/TIM JOHNSON

are not relocated tributaries. The AFBF analysis also raised strong concerns about exactly how the EPA will determine whether land or water is adjacent to a tributary and subject to regulation. There are many steps and layers required to determine whether the land or water meets that definition, it said.

Flood plain questions The trickiest part, the analysis said, “will be determining whether any water on your land is within the 100-year floodplain of, and not more than 1,500 feet from, any tributary — especially since tributaries might not be visible on the land.” The rule also requires a case-

by-case analysis of land and water within 4,000 feet of all perennial, intermittent and ephemeral streams in the National Hydrography Database. For Iowa, that would include almost the entire state, according to an Iowa Farm Bureau analysis. The EPA rule sets forth a number of exclusions, such as farm

Of particular concern to Iowa is the provision that regulates isolated features that are deemed “similarly situated,” such as the Prairie Pothole region. The Prairie Pothole region covers a large section of northern Iowa and includes some of the state’s most productive land. Because they must always be considered in the aggregate, it’s a virtual certainty that each and every Prairie Pothole will be regulated, the AFBF analysis said. The complete AFBF analysis can be found at http://bit. ly/1JN6OYQ. Stallman urged Farm Bureau members to contact their senators to pass S1140, the Federal Water Quality Protection Act, to force the EPA and the Corps to engage in real dialogue with those who will be regulated by the rule and start over. “We all want clean water. But such a worthy goal is worth doing right,” he said.


IOWA FARM BUREAU SPOKESMAN JUNE 17, 2015

Editorial

3

Signs of financial stress crop up as commodity price slump persists BY DIRCK STEIMEL

own, he said. The Chicago Fed survey, is­­ sued last month, showed a solid increase in demand for loans in the first quarter of 2015. That demand was especially strong in Iowa and Illinois, it showed. In all, 53 percent of the bankers surveyed in the Chicago Fed district reported stronger demand for loans, and only 14 percent reported a decline.

W

ith low commodity prices persisting and agricultural input costs remaining stubbornly high, financial stress is starting to germinate in farm country, according to agricultural banker surveys conducted recently by the Federal Reserve banks in Chicago and Kansas City. Demand for operating loans and loan renewals from farmers has risen sharply, and loan repayment rates are down, accord- OPPEDAHL ing to bankers in the two surveys that covered large swaths of the Midwest and the Plains states. In addition, more ag bankers are requiring that borrowers supply larger amounts of collateral to secure operating loans, the surveys showed. The increased signals of financial stress certainly do not indicate a repeat of the farm crisis years of the 1980s, according to the Federal Reserve economists who analyzed the banker surveys. But they do show that farmers and their lenders are being forced to adjust to a different economic climate and, likely, leaner times in

Loan demand continues

the coming years, they said. “There is not a lot of stress showing up yet, but we are coming from such a low base that it sticks out,” said David Oppedahl, an economist with the Chicago Fed.

Changing expectations The surveys show that farmers and lenders are starting to change their revenue expectations as the trend for low corn and soyb e a n   p r i c e s KAUFFMAN con­­t inues,  said Nathan Kauffman, an economist with the Kansas City Fed’s branch office in Omaha. Although corn and soybean

prices plunged last year, farmers could rely on fairly high crop insurance price guarantees to cushion the impact of reduced revenues, Kauffman said. But with no crop insurance cushion available and big harvests expected again in 2015, farmers and lenders are trying to prepare. “It’s clear we are going through a period of adjustment after the remarkably good years we had for a while in agriculture,” Kauffman said. “Everyone is working to build in some buffers.” Oppedahl said farmers and lenders are moving into “a different phase in the cycle” where revenues are tighter and management decisions are critical. Many farmers have raised their borrowing levels primarily because they don’t have the excess cash they had to finance operations on their

Most bankers in the two Federal Reserve surveys expect continued strong demand for operating loans because of lower crop prices, as well as tighter margins for hog and dairy raisers. A key to future loan demand, and overall farm financial health, will be how quickly costs adjust downward to reflect lower revenues, Kauffman said. There has not yet been much pressure on the cost side yet, Kauffman noted. But with revenues down and farmers looking for ways to reduce costs in every part of their operations, that’s likely to change, he said. Both Kauffman and Oppedahl said that today’s historically low interest rates are helping farmers. Fund availability is good, and borrowing costs are relatively cheap, they said. “The low interest rates have really kept things from getting more severe,” Oppedahl said.

AFBF: EPA abused rule-making process on WOTUS The agency pushed its own agenda instead of inviting and considering public input.

The Environmental Protection Agency (EPA) abused and distorted the normal rule-making process to pre-determine the outcome of its highly controversial “Waters of the U.S.” (WOTUS) rule, American Farm Bureau Fed­ eration (AFBF) General Coun­ sel Ellen Steen told the Senate Judiciary Committee last week. Instead of inviting and openly considering public input, the EPA conducted an aggressive advocacy

Spokesman Editor DIRCK STEIMEL News Coordinator TOM BLOCK Senior Features Writer TERESA BJORK Ag Commodities Writer BETHANY BARATTA Photographer/Writer GARY FANDEL

campaign to obscure the on-theground impact of the rule and to smear groups, like Farm Bureau, that dared to explain those impacts to the public, Steen told the comSTEEN mittee. “The notice-and-comment procedure for rule-making is designed to ensure that agencies take honest account of the thoughts and concerns of the regulated public,” Steen said. “Legitimate concerns over how the rule would affect agriculture,

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in particular, were subtly twisted and then dismissed as ‘silly’ and ‘ludicrous’ and ‘myths,’” Steen said. “Public statements from the agency’s highest officials made it clear that the agency was not genuinely open to considering objections to the rule.”

Social media campaign The agency also made use of new social media tools such as “Thunderclap” to gin up wellintended but ill-informed support for the rule among the lay public. Later, agency officials pointed to the resulting emails, petition signatures, postcards and other non-substantive mass comments to contend that “the public” supIowa Farm Bureau Federation: Craig Hill, President; Joe Heinrich, Vice President; Denny Presnall, Secretary-Treasurer and Executive Director; Edward G. Parker, General Counsel. Board of Directors: District 1 - Carlton Kjos, Decorah. District 2 - Charlie Norris, Mason City. District 3 - Phil Sundblad, Albert City. District 4 - Doug Gronau, Vail. District 5 - Mark Buskohl, Grundy Center. District 6 - Nick Podhajsky, Traer. District 7 - Andrew Hora, Riverside. District 8 - Calvin Rozenboom, Oskaloosa. District 9 - Will Frazee, Emerson.

ported the rule, even though the vast majority of substantive comments — by state and local governments, business owners and organizations representing virtually every segment of the U.S. economy — opposed the rule. “Regardless of whether you supported, opposed or never heard of that rule, you should shudder to think that this is how controversial regulations will be developed in the age of social media,” Steen said. “Agencies must strive to maintain an open mind throughout the rule-making process — and to inform rather than indoctrinate and obfuscate — even when policy issues have become controversial and politicized.”

Free trade deals reign in the new world of trade BY DIRCK STEIMEL Like many things in the world today, international trade in agricultural goods and other products is becoming more specific and targeted. Instead of trying to hammer out huge and very cumbersome trade deals that span the globe, countries are working to craft deals with logical trade partners, whether that’s a single country or a region, that reduce or eliminate tariffs. The goal is to help both the exporting countries and those that are primarily importers. That trend, according to economist Dermot Hayes of Iowa State University, is why it’s critical for U.S. farmers that the United States continues to pursue free trade agreements, like the ones being negotiated with nations on both sides of the Pacific and with Europe. “It’s really a whole new world we are in today in trade, and countries have to be aggressive in pursuing deals or risk being left out,” Hayes said recently at a pork export update during the World Pork Expo in Des Moines. By reducing or eliminating tariffs, the free trade agreements are lowering prices in importing countries and increasing consumer demand, Hayes said.

Colombian example A good example, Hayes said, is the gains in U.S. pork exports to Colombia after the country signed a free trade agreement with the United States. Since 2012, when the agreement went into effect, U.S. pork sales to Colombia have more than doubled, according to statistics compiled by the U.S. Meat Export Federation. In 2014 alone, U.S. pork exports increased 39 percent in volume and 52 percent in value to $134 million. “Pork sales are booming in Colombia because the price is down and people are eating more of it,” Hayes said. At the same time, he noted, domestic pork production in Colombia has remained stable as local producers have also benefited from the growing consumer demand. That scenario, Hayes said, could be repeated on a larger scale if the United States enters the TransPacific Trade Partnership (TPP), which would smooth trade with 11 other countries. Importantly, the pact would include Asian countries, like Vietnam, with fastgrowing economies and a tradition of consuming pork. “Free trade agreements are really a great deal for value-added products, like pork, where we are very competitive,” Hayes said.


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IOWA FARM BUREAU SPOKESMAN

“Everything looks good. The corn has good color, and we’ve got good moisture now,” Kruse said June 11. A steady rain had been falling all day, but farmers got a lot of field work done earlier in the week, he said. “Pretty much all of the corn is sprayed, some beans have been sprayed and I’d say 90 percent of the hay is done,” he said. Farmers have also been side-dressing nitrogen on corn, which is approaching knee-high.

The area saw 1.4 inches of rain over the weekend, and more was in the forecast. Farmers are finishing spraying and side-dressing their corn crops. Soybeans are looking good and haven’t been adversely affected by the warmer temperatures or rain. A majority of the first cutting of hay was made in the area last week. “Good volume, good yield off the first hay cutting. And pretty good quality,” Sprung said.

“We’ve really had excellent weather here, and the crops look good,” Darling said June 11. Corn and soybeans are growing well, and there haven’t been any major agronomic issues, he said. Along with spraying and side-dressing, many area farmers have been chopping their first crop of hay, Darling said. “That’s really been going on for the past couple of weeks, and they have made a lot of progress,” he said.

Temperatures that reached into the 90s last week gave a boost to crops, Parker said June 11. “Corn is looking a lot better. It was looking yellow, and we had some purple corn due to the cool temperatures. It’s finally looking green and hitting that nitrogen.” Farmers worked to beat last week’s rain, spraying corn and putting up hay. Some have also started spraying beans. Rainfall amounts varied from 1 to 3 inches since his last report.

Corn plants were knee-high last week. “It’s really growing now,” Burt said June 11. The area has been fairly dry but has seen a few rain showers with variable amounts of precipitation. They were able to get their corn fields sprayed ahead of the rain. Soybeans are at the V3 and V4 stages. “Some of the later-planted soybeans planted in May are looking pretty good now,” Burt said.

Rain, which fell June 11 in eastcentral Iowa, was welcome, Rickels said. “We’ve not had much since May 26, and things were getting just a little dry,” he said. Corn is growing well and is about knee-high, and soybeans are taking off. “Corn is starting to get that dark, green color now,” Rickels said. Farmers have used the drier period to catch up on sidedressing, spraying and putting up hay, he said.

There was just enough of a break in the weather for farmers to spray corn and finish most of their soybean planting before torrential rains hit the area, Johnson said June 11. “It hasn’t rained like this in probably six or seven years,” he said. “We got 2.5 inches of rain in the last two hours, and we had 2 inches last night. All the terraces are full, and the streets are flooding.” Some bottom ground is likely to be flooded out, he said.

LaFratte was able to cut his first crop of hay last week. “Hay looks pretty good. It’s not real heavy,” he said June 11. The first crop had cooler weather and not a lot of sun, he said. He hopes the second cutting will be better. Last week’s heat was good for crop development, he said. LaFratte was able to get the rest of his soybeans planted. Most of the farmers in the area have now finished planting soybeans, he said.

“Right now, things really couldn’t look much better here,” Schrock said June 11. Corn is approaching waist-high in many areas, and the color is good, he said. Soybeans are also growing well and are almost canopying over the rows, Schrock said. Farmers are side-dressing corn, and some are using a Y-drop system to place the fertilizer precisely at the base of the plant, he said. Hay work is also progressing.

More supporters join renewable fuels education campaign BY TOM BLOCK Ten new partners have joined America’s Renewable Future (ARF), an Iowa-based organization aiming to educate presidential candidates in both parties about the benefits of the Renewable Fuel Standard (RFS). The coalition, founded earlier this year by the Iowa Renewable Fuels Association, Iowa Corn Growers, Growth Energy and Poet, has added the Iowa Biodiesel Board, Iowa Ethanol Producers Association, Iowa Soy­bean  Association,  Renewable Fuels Association, DuPont, Iowa Biotechnology Association, Stine

Seed, Archer Daniels Midland, Novozymes and Iowa-Nebraska Equipment Dealer Association to its list of partners. “We are very excited to see support (for ARF) grow, and I think we’ll see more in the future,” Iowa Renewable Fuels Association Executive Director Monte Shaw said last week during a conference call announcing the new partners. “It really shows this is not just about farmers, or ethanol and biodiesel plants. It’s something that really affects every one of us.” During the call, representatives of ARF discussed reaction to the EPA’s new proposed volume obli-

gations under the RFS, which are higher than the agency proposed in 2013 but are still well below levels set by Congress. The EPA is proposing a 2015 RFS volume obligation of 16.3 billion gallons, short of the 20.5 billion gallons Congress required when it wrote the law in 2007. The 2016 volume obligation is 17.4 billion gallons, well below the 22.25 billion gallons required by Congress.

Limits choice, innovation “The biggest consequence (of the reductions) is that it takes away choice at the pump,” said Iowa Corn CEO Craig Floss.

“Secondly, it will limit innovation at existing ethanol plants, and it’s also going to limit innovation of future renewable fuel sources.” Corn prices are considerably lower than 2013, when the EPA initially proposed cutting back renewable fuel usage requirements, and global grain supplies are plentiful to meet the needs of all end users, Floss said. “Corn is now below the cost of production,” he said. “At a time when we have a significant supply of corn, ethanol is a significant driver for us. Anything we can do to chew up more of that (corn) stockpile would be good for corn

farmers.” Mark Recker, a Fayette County Farm Bureau member, said ethanol has also brought jobs to rural communities across Iowa. “The RFS is the one shining star that has brought opportunities back to this state,” Recker said. “It’s not just important that I and my farm do well but my entire community succeeds, and that’s what ethanol and the RFS has done for us.” The EPA is accepting comments on the proposed RFS volumes until July 27. The agency is also holding a public hearing on the proposal June 25 in Kansas City.

After planting, focus turns to crop protection and weed control BY JOHN GRANDIN It is impossible for anyone to predict with any degree of accuracy what the rest of the growing season will be like, so it is important that we continue to plan for success and not ignore the investment in the growing crops. W e   h a v e GRANDIN seen positive response from foliar applications of fungicide during extremely wet years as well

CROPS TODAY as during dry years. If fungicide application was a part of your original plans, I encourage you to continue with your plan. If you have not used foliar fungicides in the past, this may be a good year to utilize this management practice on limited acres and check the responses for yourself. Weeds love moisture and warm weather, and most residual herbi-

cides do not. Remain vigilant with your crop scouting and be timely with herbicide applications. Be sure to think ahead, and pay attention to recropping intervals when selecting herbicides for your fields. This is extremely important for fields where you may be considering seeding a cover crop. Successful establishment of a cover crop prior to the stated recropping interval doesn’t supercede the herbicide label, especially if the crop is intended to be grazed or harvested for forage. Last year was a pretty quiet season for corn rootworm activity, and economic concerns may

have resulted in some corn fields being planted without adequate protection from this pest. Now is a good time to be digging corn roots and looking for corn rootworm larvae and signs of their feeding damage. Although there is very little that can be done to manage corn rootworm and minimize their root damage to the growing crop, you can make notes of fields to monitor for silk clipping and also potential early harvest because of standability concerns. Root digs also provide an ideal opportunity to assess soil structure and to identify soil compaction

that may need to be addressed with post-harvest tillage. Typically, any compaction deeper than 4 inches will require some form of intervention to correct. The cyclical freezing and thawing that occurs during the winter months will normally help restore structure to only the top 4 inches of soil. If you plan for success, you may not always reach your target, but if you plan for failure, you are very likely to hit your goal. Stay positive and as always, be safe. John Grandin is a GROWMARK Western Region senior field sales agronomist. His email address is jgrandin@growmark.com.


IOWA FARM BUREAU SPOKESMAN JUNE 17, 2015 5

Iowa farmers aware of water quality plan, ISU survey shows BY BETHANY BARATTA Most Iowa farmers are aware of Iowa’s Nutrient Reduction Strategy, and they are working with others to learn more and implement practices on their farms, a recent poll concluded. The 2014 Iowa Farm and Rural Life Poll included several questions relating to the strategy as a way to gauge Iowa farmers’ knowledge of and support of the plan. The strategy, which the state launched in 2013, provides a science- and technology-based framework to guide actions that reduce the loss of nutrients to surface water. The 2008 Gulf Hypoxia Action Plan prompted the strategy, calling for Iowa and other states in the Mississippi River watershed to develop strategies to reduce nutrient loads to the Gulf of Mexico. The surveys were mailed to 2,218 farm operators in February 2014, about seven months after the launch of Iowa’s Nutrient Reduction Strategy. Of the 1,128 farmers who responded to the survey, almost 80 percent had some level of knowledge of the Iowa Nutrient Reduction Strategy. Only 20 percent said they were not knowledgeable at all of the strategy.

Aware of strategy This confirms broad awareness of the strategy, said Rick Robinson, environmental policy advisor at Iowa Farm Bureau Federation (IFBF). “The survey also confirms that farmers are concerned, engaged

Owen Dykshorn plants corn after a rye cover crop near Ireton in Sioux County. The short-season corn will be harvested for silage in the family’s dairy operation. Cover crops are a key element of the Iowa Nutrient Reduction Strategy. An Iowa State University poll shows the state’s farmers are aware of the strategy and making a priority of meeting its objectives. PHOTO/GARY FANDEL

and willing to do more, but sometimes there are barriers to more conservation adoption,” Robinson said. “The survey will help us target our efforts more.” Seventy-six percent of the re­­­­spondents ag­­ reed that they were concerned about agricul- ROBINSON ture’s impacts on  Iowa’s water quality. Seventy-two percent of the farmers who responded said they would like to improve conservation practices on the land they farm to help meet the goals of the strategy. More than 47 percent

said helping meet the goals of the strategy is a high priority.

Working toward goals Iowa farmers are already working toward meeting the goals of the strategy, Robinson said. “Farmers and at least 100 local organizations in 16 targeted, smaller watersheds have combined more than $11.8 million in their own funding with more than $7.5 million in state money and are setting goals, planning and implementing conservation activities, supported by the science that is appropriate for their local conditions,” he said. Still, farmers recognized they could do more to implement prac-

tices on their farm that would work toward the strategy’s goal. More than 46 percent of the farmers said they would be willing to have specialists and experts help them evaluate how their farm is doing in terms of keeping nutrients out of the waterways. One of the largest barriers to nutrient management-related conservation action is the cost of some conservation practices, respondents said. The IFBF supported legislation that provided more than $17 million in funding for the strategy, related conservation projects and soil conservation cost-share in the state. In 2015, Iowa Farm Bureau SHARE grants provided $72,350 for nine

new local conservation/water quality projects, Robinson noted. And there are at least six county Farm Bureaus or affiliated service companies named as partners in the 16 Iowa Department of Land and Ag Stewardship (IDALS) Water Quality Initiative priority watershed projects. County Farm Bureaus are continually considering active, meaningful roles in projects. “Challenges remain, but farmers and cities are working together,” Robinson said. “Our conservation programs are certainly working better and smarter.” To learn more about the strategy and what farmers are doing, go to www.conservationcountsiowa.com.

USDOT grants waivers for livestock haulers The U.S. Department of Trans­ portation (DOT) last week granted a two-year waiver of the hoursof-service rule for certain drivers hauling livestock. The rule, issued in mid-2013 by the DOT’s Federal Motor Carrier Safety Administration (FMCSA), requires truck drivers to take a 30-minute rest break for every eight hours of service. It would have prohibited drivers hauling livestock and poultry from caring for animals during the rest period. The National Pork Producers Council, on behalf of other livestock, poultry and food organizations, in 2013 petitioned the FMCSA for a waiver and exemption from complying with the regulation. The groups this spring asked the FMCSA to renew the waiver and to extend it for the two-year maximum allowable under federal law.

Animal welfare measure In petitioning the agency, the livestock organizations noted that the rule would cause livestock producers and their drivers irreparable harm, place the health and welfare of the livestock in their care at risk and provide no apparent increased benefit to public safety — and likely decrease public safety — while forcing the livestock industry and its drivers to choose between the humane handling of animals or

complying with the rule. The groups also pointed out that the livestock and poultry industries have programs — developed and offered through the U.S. Department of Agriculture — that educate drivers on transportation safety and animal welfare. The pork industry, for example, has the Transport Quality Assurance program. “This decision will help ensure the continued humane treatment and welfare of livestock while traveling on the nation’s highways,” said NPPC President Dr. Ron Prestage, a veterinarian and pork producer from Camden, S.C. “The waiver will ensure that during hot summer months livestock won’t be sitting in the sun for extended periods, with drivers unable to care for them because they’re required to take a 30-minute break.” Official notice of the decision is set to be published in the Federal Register, and the waiver became effective June 12. “America’s livestock and poultry farmers are pleased that the FMCSA recognized that its rule would not be practicable for drivers who transport hogs, cattle and poultry,” Prestage said. “We’re grateful for FMCSA Ad­­ ministrator Anne Ferro’s recognition of the ongoing commitment of America’s pork, livestock and poultry producers to animal welfare and highway safety.”

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JUNE 17, 2015

IOWA FARM BUREAU SPOKESMAN

Near-term issues cloud bright future for U.S. pork exports BY DIRCK STEIMEL

T

he long-term outlook for U.S. pork exports remains “fantastic,” says Iowa State University (ISU) economist Dermot Hayes. “We have the land and the ability to produce what the world’s consumers want, especially those in Asia,” he said recently at the World Pork Expo in Des Moines. In addition, pork exports would be propelled higher by wide-ranging free trade agreements that are being considered with countries in the Pacific region and in Europe. However, in the near term, pork farmers are facing obstacles that have trimmed overseas sales, said Hayes, who has been a consulting trade HAYES economist for the National Pork Producers Council since 1995. And these obstacles, along with a ramp up in U.S. pork production, are likely to weaken pork farmers’ profit potential for at least the rest of 2015, Hayes said. Pork raisers overcame one difficult hurdle earlier this year, with the end of a work slowdown at West Coast ports. The labor slowdown badly disrupted fresh pork shipments to Asia. With the West Coast ports getting back to business, pork exports totaled 200,125 metric tons in April, up 4 percent year-over-year and the largest since March 2014. But sharply reduced sales to China and increased competition from Europe and Canada, which are both aggressively seeking markets after Russia cut off pork imports last year, are still weighing on the U.S. overseas sales, Hayes said.

Lower sales to China China, the world’s largest consumer and importer of pork, has barred some U.S. exports over the use of the feed supplement ractopamine. The use of the feed additive, which has been approved by U.S. health agencies and in many other countries, has prompted Chinese buyers to look elsewhere for pork supplies, Hayes said. “This is not an easy issue,” Hayes said. “Ractopamine is a legal and safe product, but the Chinese don’t want it, and that has become a very difficult issue for farmers here,” he said. The National Pork Board re­­ cently distributed an open letter to farmers highlighting the potential of pork exports to China and the issue of ractopamine. The Pork Board letter — authored by Dale Nelson, president of the Pork Board and Chris Hodges, the organization’s CEO — notes that China has seen a massive reduction in sow numbers, while U.S. production is growing with the fading of the impact of the porcine epidemic diarrhea virus (PEDV). However, the import restrictions have meant that U.S. farmers haven’t been able to take advantage of this market opportunity; and indeed, sales have declined, the letter said. In the first four months of 2015, exports of U.S. pork and pork variety meats to China tumbled 55 percent from the same period of 2014 to just under 53 million metric tons. The value of

U.S. pork sales to China was also down 55 percent to approximately $112 million when compared to the same period in 2014. Some pork producers, the Pork Board letter notes, question whether removing ractopamine would restore the Chinese market. Still, the organization says that pork producers who are interested in producing pigs without ractopamine, and are able to adjust their production, should consider working with their packers to take advantage of the market opportunity.

Russian fallout U.S. pork raisers are also feeling the effects of Russia’s move to cut off agricultural imports from Europe, Canada and the United

States. That cutoff was a reaction to western sanctions in Russia over its involvement in Ukraine. “Russia was not a big importer of U.S. pork, but it was a key market for Europe and Canada,” Hayes said. With the Russian market closed, Europe and Canada are moving into Asian markets traditionally held by the United States, Hayes said. Role: Name: Initials: That market disruption, comProofing Laura bined with the strong U.S. dollar Project Mgr. Courtney and the labor issues, has created Writer challenges for pork exports in late Director 2015, JordanHayes said. 2014 and Artearly Still, ACD Hayes said the overall outlook Production for U.S. pork exports Lead remains Production very Artist strong. Importers jason are seeing the value to importing pork, instead of importing feed grains and feeding animals them-

selves, he said. “It’s more expenOrder three-times Role: Name: Initials: sive to ship feed grains than meat, GCD and we Artcan send the customer Buyer exactly what they want,” Hayes Account Exec. said. Senior Level AE In many parts of the world, Other are demanding varicustomers ety meatsOtherthat have low value in domesticProduction markets. That raises the Mgr. Jeff price for the entire animal and increases returns to farmers, the ISU economist said.

Date:

U.S. hog farmers would see increased exports if proposed free Order: Deadlines trade agreements—the TransInternal: Pacific Trade Partnership (TPP) Client: and the Print/Ship: Transatlantic Trade and BW’s Partnership to: Investment (TTIP)— Colors to: are enacted, Hayes said. PDF to: The free trade agreements, by Package to: reducing 1 tariffs, 2 3 4 5 6 7would increase pork consumption 8 9 10 11 12 in key growth markets, such as Vietnam, as well as established markets, like Japan, he said.

Date:


IOWA FARM BUREAU SPOKESMAN JUNE 17, 2015 7

Pioneer plants pollinator habitat to aid butterflies, bees BY TOM BLOCK Matt Squires carried a tray of plants to the corner of a two-acre plot outside DuPont Pioneer’s Beaver Creek research building in Johnston and began sinking the seedlings into the ground, following a carefully designed plan outlined by a colleague. But Squires, a senior research associate, wasn’t planting the company’s latest corn or soybean varieties designed to withstand insects, diseases or drought. Instead, he and about 40 other Pioneer employees were planting three varieties of milkweed in a pollinator habitat designed to aid dwindling Monarch butterfly populations. The Pioneer employees planted hundreds of common milkweed, swamp milkweed and butterfly milkweed plants, which were started in company greenhouses normally reserved for corn and soybean research. The pollinator plot reflects an industry-wide effort to raise awareness and create more habitat not only for the monarch butterfly, but also other pollinators critical

to agricultural crops and environmental health. “Pollinators are critical to the global food supply. This is one thing we can do to help them help us with our food supply,” said Derek Nelson, DuPont Pioneer sustainability manager. “We’re planning for a little more than two acres now, and we have an opportunity for more than 120 acres in Johnston.” Experts say pollinator populations are struggling for a variety of reasons, including diseases, weather and loss of habitat. Last year, U.S. beekeepers reported losing about 40 percent of honeybee colonies, threatening the essential pollination services their bees provide to agriculture. Honeybee pollination adds more than $15 billion in value to agricultural crops each year. Monarch butterfly populations, widely viewed as an indicator of environmental health for many pollinators, are also waning. Experts say the number of overwintering monarchs in Mexico’s forests declined by 90 percent or more over the past two decades.

Nancy DeLong, left, and Derek Nelson plant milkweed seedlings at the DuPont Pioneer Johnston campus. PHOTO/ TOM BLOCK

The White House recently an­­ nounced a nationwide strategy to aid pollinator health, including

management strategies for federal lands and farmland conservation programs. There is greater con-

cern that the federal government may take more drastic steps, such as banning neonicotinoid insecticides, which some environmentalists blame for the declining pollinator health. Farmers and city residents alike can play an important role in creating habitat to help boost pollinator numbers, Nelson said, noting that Pioneer handed out milkweed seedlings and wildflower packets to its employees at a recent event to encourage them to create their own backyard habitat. “Every little bit of habitat helps, even in a backyard garden,” he said. “Everyone can play a small part.” Nancy DeLong, DuPont Pio­ neer director of sustainable agriculture systems, said farmers in­­­terested in creating pollinator habitat on their farms can contact their area seed representative. “We have a great legacy as a company, and we want to continue that legacy,” she said. “We believe we can both care for the Earth and feed the world sustainably.”

House passes federal grain inspection bill

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The U.S. House of Represen­ta­ tives last week approved the U.S. Grain Standards Reauthorization Act (H.R. 2088), which reauthorizes federal grain inspection services through fiscal year 2020 and also sets up a process to avoid a repeat of last summer’s 36-day shutdown at a Washington state port. Washington state inspectors stopped providing grain inspections due to a labor dispute at the port. The U.S. Department of Agriculture (USDA) declined to intervene in the shutdown, citing a safety concern. The House bill would require state-delegated agencies to provide 72-hours advance notice to the USDA if they intend to disrupt inspection services. If service is interrupted, inspections would need to be resumed by federal inspectors or another state agency within six hours if advance notice was given or within 12 hours if it wasn’t. The Senate Agriculture Comm­ ittee has also approved its own grain standards reauthorization bill, which is awaiting floor action.


8 JUNE 17, 2015

IOWA FARM BUREAU SPOKESMAN

Iowa Agriculture AG BRIEFS

Fighting through mud to plant in southwest Iowa

Cattle barn open houses The Coalition to Support Iowa’s Farmers (CSIF) is hosting open houses at two new monoslope cattle barns in eastern Iowa June 23 and July 1. Marty and Steve Schwers will host an open house at their 1,080-head monoslope barn from 5 to 8 p.m. June 23. The Schwers Brothers feedlot is located at 31662 Highway 3, near New Vienna in Dubuque County. Jargo Farms is hosting a cattle barn open house at its new 480head barn July 1 from 5 to 7 p.m. The farm is located at 4201 120th St. near Clinton. There is no cost to attend either open house, and dinner will be provided. More information is available on the CSIF website at www.supportfarmers.com.

Soybean market tour April Hemmes of Hampton is one of 10 U.S. soybean farmers selected to learn more about the soybean checkoff and get a firsthand look at key international soybean markets through the United Soybean Board’s See for Yourself program. The participants will travel to St. Louis, China and Vietnam from July 30-Aug. 7. This will be See for Yourself’s first visit to Vietnam, which is the third-largest aquaculture-producing country in the world and offers a unique look at animal agriculture’s needs for high-quality soybean meal. Other stops during the program will highlight the checkoff’s work in production research, transportation, biodiesel, high oleic soybeans and more.

Cuba trade bill Sens. Jerry Moran and Angus King introduced a bill intended to fully lift the trade embargo with Cuba. The Cuba Trade Act of 2015 would grant the private sector the freedom to trade with Cuba, while protecting taxpayer interest from any risk associated with such trade. The bill would continue the prohibition of the U.S. Department of Agriculture-Foreign Agriculture Services (USDA-FAS) Market Dev­­e lopment  Programs  (MAP, FMD, EMP and TASC), USDAFAS Export Financing programs (GSM-102) and the Export-Import Bank from expending federal funds to finance or promote Cuba trade.

Webb appointed Sherrie Webb, director of animal welfare for the National Pork Board, has been elected as chairperson of the Animal Ag­­riculture Alliance board of directors. Webb’s two-year term in this position began May 1. The alliance’s 31-member board of directors consists of representatives from all major sectors of animal agriculture.

Jon Young and his son, Rob, hustled to plant soybeans last week near Elliott in Montgomery County before heavy rains drenched southwest Iowa later in the week. That also meant knocking some mud out of his planter, at right. Like most farmers in the region, Young is well behind last year’s planting because of the persistent rains. “It’s just been a lot wetter this year,” Young said. “We were done with beans on May 16 last year.” The U.S. Department of Agriculture’s weekly crop report showed that farmers in Iowa’s southwest counties had planted just over one-half of their expected soybean acres by June 7, well behind the state average of 88 percent. PHOTOS/GARY FANDEL

Utilities board sets plan for considering pipeline The Iowa Utilities Board (IUB) last week issued a procedural schedule for consideration of a proposed underground pipeline that would carry crude oil from North Dakota to Illinois, crossing Iowa. The IUB has created two different schedules: one schedule to consider the merits of the Texas energy company’s petition for a hazardous liquid pipeline, and a separate set of suggested deadlines if Dakota Access files its request for eminent domain by Aug. 10. The proposed project, called Dakota Access Pipeline, would connect the rapidly growing oil production fields in North Dakota to terminal facilities in southern Illinois. It would cross 18 counties

in Iowa, covering 343 miles on a diagonal path from northwest to southeast Iowa. The 30-inch diameter pipeline would be installed a minimum of 48 inches deep as it crosses farmland and would go deeper where tile drainage lines are present, the company has said. IUB’s order gives landowners and others a deadline of July 27, 2015, to file a petition to intervene in the proceedings on the proposed project. After that date, the IUB will accept interveners only for good cause. Dakota Access was given a tentative deadline of Aug. 10 to file any request for eminent domain. If granted, eminent domain would allow the company to obtain land it hasn’t been able to obtain through

negotiations with landowners. If the company files the eminent domain petition, it has until Sept. 23 to provide testimony on parcels of land where it wants to invoke the procedure. Then the Office of Consumer Advocates and other intervenors have a deadline of Oct. 12 to provide testimony and exhibits against the eminent domain petition, and the company must offer its rebuttal by Oct. 26. The IUB has blocked off Nov. 12 through Dec. 2 for a hearing to be held on the petition. IUB will set aside specific times during those days for landowners from each county to address specific concerns. The schedule anticipates an IUB decision on the petition in

late December or early January 2016. The Order Setting Procedural Schedule can be found at http:// bit.ly/1GsDx4H. The Iowa Farm Bureau Fed­ eration has created a website at http://bit.ly/1zNtMLX to provide information on the permit process the pipeline company must follow before construction of a pipeline, and a summary of the pipeline company’s duty to restore agricultural lands during and after construction. The Iowa Farm Bureau encourages all landowners to work with their personal attorney to make sure concerns are addressed and their rights are protected before signing an easement or other document.

ISU develops plan to contain swine disease outbreak BY BETHANY BARATTA In the event of a foreign animal disease outbreak in the United States, the pork industry wants to be ready to face the challenges while maintaining business continuity for the pig farmers not directly affected by the disease. Iowa State University’s (ISU) Center for Food Security and Public Health (CFSPH) and other partners are working to establish a plan they could implement should a foreign animal disease hit the nation. “The influenza outbreak in the poultry industry has been a real wake-up call to what can happen to an industry if they get a foreign animal disease that affects trade and commerce,” said Patrick Webb, the director of swine health for the Pork Checkoff. He said the secure egg and turkey supply programs, which were developed years ago, have been “invaluable in the ability

to maintain business continuity for the poultry industry for those sites that are not affected by the disease.” The goal for the plan, known as the Secure Pork Supply Plan, is to have a workable plan for hog farmers that is credible to state and federal animal health officials while providing a safe supply of pork for consumers, said Pam Zaabel, veterinary specialist for the Center for Food Security and Public Health at Iowa State University.

Focus on four diseases The group is working to develop a plan that focuses on four foreign animal diseases (FAD) — footand-mouth disease (FMD), classical swine fever, African swine fever and swine vesicular disease. Zaabel and her group recently completed a pilot project in Iowa with farmers and other industry partners to determine how a plan would function should a FAD

enter the state. “There are plans currently with the USDA …, but the secure pork supply plan is there to develop procedures to allow the safe movement of animals with no evidence of infection in an FAD control zone to our pork processing plant or other sites of production,” she told farmers at the World Pork Expo recently. Working with Paul Thomas, a veterinarian with AMVC Vet­ erinary Services and Swine Man­ agement Services in Audubon, the pilot helped identify the gaps in the plan, Zaabel said. The group’s proposed approach includes premises registration and animal identification, biosecurity standards, active and passive surveillance, World Organization for Animal Health (OIE) compartmentalization, U.S. Department of Agriculture (USDA)-monitored premises and a voluntary program pre-outbreak. The plan considers the bio­

security practices currently used on the farm while addressing ways in which farmers can improve. It looks at the farm’s biosecurity training for its employees and best ways the plan can be communicated. The project looked at surveillance protocols and observation methods farmers could use prior to moving their hogs to other sites or to processing plants. Zaabel said the group is looking for ways to include parts of the Secure Pork Supply Plan in the industry’s Pork Quality Assurance (PQA) training materials. The group plans to adjust the plan before running a larger project that would cover three to four states, Zaabel said. “It’s important to have an agreement prior to an outbreak and work through the bugs so it’s functional when it’s needed.” To learn more about the Secure Pork Supply Plan, go to www. securepork.org.


IOWA FARM BUREAU SPOKESMAN

House passes COOL repeal, Roberts calls for quick Senate action The U.S. House of Representa­ tives voted 300-131 last week to approve a bipartisan bill (H.R. 2393) that would repeal the beef, pork and chicken provisions of the mandatory country-of-origin labeling (COOL) law. Final passage was supported by 234 Republican and 66 Democrat representatives. Among Iowa’s del­ egation, Republicans Steve King, Rod Blum and David Young sup­ ported the bill, while Democrat Dave Loebsack voted against it. Senate Ag Committee Chair­ man Pat Roberts (R-Kansas) issued a statement applauding the House action and said it is important for the Senate to act quickly as well to protect American agriculture from retaliation by Canada and Mexico. Roberts said that while he is taking suggestions from his colleagues for alternatives to meet World Trade Organization (WTO) compliance obligations relative to the beef and pork COOL pro­ grams, he believes repeal remains PrOven the surest way to protect against retaliatory tariffs. A WTO determination that U.S. mandatory COOL law is ille­ gal under international trade rules allows Canada and Mexico to impose retaliatory tariffs against U.S. agricultural commodities and other goods until the case is resolved. A 60-day WTO process to determine appropriate retalia­

JUNE 17, 2015

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10 JUNE 17, 2015 IOWA FARM BUREAU SPOKESMAN

Crops expected to be big, but not records, USDA says

T

his year’s corn crop is forecast to yield 13.63 billion bush­ els, but it won’t be a record crop, the U.S. Department of Agriculture (USDA) said in its World Agricultural Supply and Demand Estimates (WASDE) re­­ port last week. The 13.63-billion-bushel pro­ jection would be 4 percent below last year’s record, the report said. Corn beginning stocks for 2015/16 were raised in the report with a 25-million-bushel reduc­ tion in the 2014/15 forecast for corn use in ethanol production. Corn ending stocks for 2015/16 were projected at 1.77 billion bushels, up 25 million bushels, according to the USDA. The range for the 2015/16 season-average farm price was unchanged at $3.20 to $3.80 per bushel, compared with the 2014/15 range of $3.55 to $3.75 per bushel, which was also unchanged this month.

Soybean stocks The USDA projects a har­ vest of 3.85 billion bushels in its 2015/16 June forecast. This is 119 million lower than the 2014/15 estimate, the report said. This month’s U.S. soybean supply and use projections for

2015/16 include lower beginning stocks, slightly higher crush and lower ending stocks, the report said. Lower beginning stocks reflect higher crush and export projections for 2014/15. Soybean exports are projected at 1.81 billion bushels, up 10 mil­ lion, reflecting sales and ship­ ments through May. Soybean ending stocks for 2014/15 were projected lower at 330 million bushels, down 20 mil­ lion from last month, the report said. Ending stocks for 2015/16 were reduced 25 million bushels to 475 million. The 2015/16 season-average price for soybeans is projected at $8.25 to $9.75 per bushel, unchanged from last month.

Turkey, egg production As expected, avian influenza is affecting this year’s turkey and

egg supply forecasts, the USDA confirmed in its WASDE report last week. “Turkey production is reduced for both 2015 and 2016 as high­ ly pathogenic avian influenza (HPAI) has significantly affect­ ed supplies of turkeys and the expected pace of flock recovery results in a reduced 2016 produc­ tion forecast,” the USDA said in the WASDE report. “Egg production for 2015 and 2016 is also lowered as HPAI has impacted the laying flock, and the forecast into 2016 reflects the expected speed at which the flock can be rebuilt.” The USDA forecast 2015 turkey production at 5.6 billion pounds, down from the May fore­ cast of 5.98 billion pounds, the report said. Turkey production in 2016 is forecast at 6.01 bil­ lion pounds, the report said. This forecast was lower than the May forecast for 2016, which was 6.21 billion pounds, the USDA said. The USDA forecast 2015 egg production at 7.99 billion dozen, down from the May forecast of 8.32 billion dozen. The USDA projects 8.14 billion dozen of eggs will be produced in 2016, sharply lower than the 8.52 billion dozen forecast in May.

Korea imported 2,527 tons of U.S. beef from May 1 from May 10, the Ministry of Food and Drug Safety reported last week. During the same time, Australia exported 2,475 tons to Korea. “It has been the first time in eight years that U.S. beef imports exceed Australian beef in Korea after the government decided to resume U.S. beef imports in June 2008,” the U.S. Meat Export Federation told Business Korea.

DDGS prices sink Prices for U.S. distillers’ dried grains with solubles (DDGS) fell more than $15 per short ton last week on rumors that China was cancelling cargoes or push­ ing back deliveries until autumn, export sources told Reuters.

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Contract

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$16.76 $14.06

Beef exports strengthen The United States may be tak­ ing back its share of the beef export market to South Korea, Business Korea reported.

Weekly Average Price Comparison Price comparisons: Week ending: 06/12/2015 05/15/2015 06/13/2014 Cattle - National 5 Area Confirmed Sales 9,643 5,319 71,649 5 Area 65-80% Choice Steers: Wtd Avg. $155.00 NA $149.58 Average Weights (Estimate) Cattle 1334 1339 1301 Boxed Beef Choice 600-750 (5 day avg.) $245.72 $261.93 $231.87 Boxed Beef Select 600-750 (5 day avg.) $240.42 $251.10 $223.72 Five Day Average Hide and Offal Value $13.58 $13.55 $15.43 Cattle - Interior Iowa – Minnesota Supply: 1,133 4,861 23,352 Average Price Choice Steer: Live Basis NA $162.05 $149.27 Average Price Choice Steer: Dressed Basis NA $256.04 $235.45 Feeder Steers at River Markets (Neb. Feedlots) #1 Muscle Thickness 500-600# NA NA NA #1 Muscle Thickness 700-800# NA NA NA Hogs -- Interior Iowa – Minnesota ISM Friday Weighted Average Carcass Price $77.80 $81.85 $116.50 Average Weights (Estimate) Hogs 282.1 281.2 286.7 Sows 1-3 300# and up: Average Price $32.36 $24.66 $72.85 Pork Loins 1/4” trimmed 13 - 19 pound $117.00 $129.69 $150.27 51-52% 200 pound Pork Carcass (5 day avg.) $85.24 $82.00 $120.77 Feeder Pigs: National Direct Delivered Feeder Pigs 10 Pounds Basis - Wtd Avg. $24.90 $39.28 $74.18 Feeder Pigs 40 Pounds Basis -- Wtd Avg. $52.59 $63.58 $112.23 Sheep -- National Slaughter Lambs Negotiated Sales 3,800 1,700 7,900 Choice & Prime Wooled and Shorn 130 -150 lbs $170.00 NA No Test Iowa Large Eggs (cents per dozen) $2.15 $1.27 $0.91 Young Hen Turkeys: 8 -16# -- Eastern (cents/lb) 114.40 108.94 110.00 *Iowa Ethanol Prices $/gal $1.45 $1.60 $2.23 Futures: Corn $3.53 $3.66 $4.48 State Average Cash Corn Price $3.31 $3.49 $4.32 Basis -$0.22 -$0.17 -$0.16 Futures: Soybean $9.40 $9.53 $14.27 State Average Cash Soybean Price $9.13 $9.20 $14.03 Basis: -$0.27 -$0.33 -$0.24 Slaughter Under Federal Inspection Estimates Estimates Actuals Hogs: 2,097,000 2,080,000 1,889,000 Cattle: 534,000 564,000 574,000 Sheep: 35,000 33,000 39,000 Estimated Numbers through Saturday . Cash Corn and Soybean prices are the Iowa Average Prices as reported by IDALS. NA-No report at time of publication. ***Confidentiality of data prohibits publication of this report under Livestock Mandatory Reporting. The report will be published when and if enough data is aggregated to meet the 3/70/20 guideline.*** Source: USDA Livestock and Grain Market News

China, a top DDGS importer, cancelled two bulk vessels of U.S. DDGS and could cancel as many as six more cargoes, two sourc­ es said. The vessels can hold as much as 55,000 tonnes of DDGS. Another source said the country was only “rolling over” deliver­ ies until October or later to take advantage of lower prices during harvest when supplies are most plentiful. In the U.S. barge export mar­ ket, bids for DDGS were seen at $170 per ton for June and July shipments, down from $187 at the beginning of the week and $200 at the beginning of the month, sourc­ es said. In eastern Iowa, DDGS were trading at $160 per ton, the lowest levels of the year, accord­ ing to USDA data.

$16.70 $16.98 $17.05 $17.23

$1.7550 $1.7225 $1.9000 $0.8975

Settle Last Week $17.24 $17.29 $17.20 $16.73

Iowa Hay Auctions Dyersville, June 10

Hay, large squares, good, $80-135; fair, $40-70; utility, $15; large rounds, good, $60-90; fair, $50-60; utility, $40-50. Straw, large squares, good, $75; fair, $3234. Grass, large rounds, good, $50-65; fair, $45-55. Corn stalks, large rounds, good, $2537.50. Mixed, large squares, good, $130; fair, $4070; large rounds, good, $55-85.

Ft. Atkinson, June 10

Hay: small squares, new crop, $75-105; large squares, new crop, $55-80; large rounds, new crop, $40-95. Straw: large squares, $95-110.

Perry**, June 6

Alfalfa, small squares, premium, $7-8; good, $4.50; large squares, premium, $45; good, $40; large rounds, premium, $60;

good, $45. Grass, small squares, premium, $3.50; good, $2.50; fair, $2; large rounds, premium, $45; good, $35; large squares, good, $40; fair, $30. Straw, large squares, $25; small squares, $3.

Rock Valley, June 11

Alfalfa, large rounds, premium, $140-155; good, $120-135; fair, $100-110; utility, $7085. Grass, large rounds, premium, $130-135; good, $115; utility, $60-85. Mixed, large rounds, fair, $90-100. Corn stalks: large squares, $42.50; large rounds, $52.50-57.50.

Yoder**/Frytown, June 10 Alfalfa, large rounds, $50-62.50. Grass: large rounds, $47.50.

**Perry and Yoder hay auction prices are per bale. All other prices are per ton. Contacts: Dyersville, 563-875-2481; Ft. Atkinson, 563-534-7513; Perry, 515-321-5765; Rock Valley, 712-476-5541; Yoder, 319-936-0126

Similar to the soybean graph last week, this corn graph shows that recent soybean prices have fallen below an example cost of ownership line (6 cents per month). Note that the highest weekly price at $3.71 in March did not give the biggest return above ownership costs—that occurred on Dec. 17 at $3.66, which was 50 cents above cost of ownership. This proves that once bushels are put into storage, the highest price is not necessarily the best objective. The greatest margin above costs should be the goal. Many farmers still storing corn and soybeans at this point in mid-June are facing the timing deadline of emptying the bins for the new crop. What is your plan for stored bushels?


IOWA FARM BUREAU SPOKESMAN

Corn export projection at risk

E

ven though the pace of corn exports is still on track to reach the U.S. Department of Agriculture’s forecast, there’s reason to think exports might fall short in the end. For the second consecutive year, the area planted to second-crop corn in Brazil has enjoyed unusually good weather. The area planted to second crop was significantly larger than anticipated. Brazil’s larger second crop increases the competitive supply U.S. corn will face in the world trade over the next three to four months. Meanwhile, the United States’ soybean export shipping pace continues to exceed expectations by a significant margin. To date, the United States has shipped 180 million bushels more than this time last year. With sales keeping pace with last year’s at this time, the United States remains on pace to even exceed the USDA’s latest projection of 1.81 billion bushels. Wheat exports ended the marketing year on a soft note. With U.S. prices still high compared to the rest of the world, the new-crop campaign is getting off to a slow start. 2000

U.S. Corn Export Shipments

1750

million bushels

5-Year Avg. 2013/2014

1000 Projected 2014/2015 2014/2015

750 500 250

data - AMS/USDA

0 9/4/14

11/14/14

1/24/15

4/5/15

6/15/15

8/25/15

1800

U.S. Soybean Export Shipments

1600

million bushels

1400 1200

600 2013/2014 Projected 2014/2015 data - AMS/USDA

0 9/4/14

11/14/14

1/24/15

2014/2015

4/5/15

6/15/15

8/25/15

U.S. Wheat Export Shipments

million bushels

1000

USDA supply/demand report set a negative tone for the near term. Analysts lowered their ethanol grind

600 400

2013/2014 Projected 2014/2015 2014/2015 data - AMS/USDA

8/7/15

10/17/15

12/27/15

3/7/16

5/17/16

Cash Strategist Positions at a glance

CORN 2014

3-10-14 — 10% sold @ $4.82

3-10-14 — 15% sold @ $4.78

3-31-14 — 10% sold @ $4.95

11-20-14 — 15% sold at $3.78

BEANS

300

2015

100% unsold

50% unsold

2014

5 1/2-year low

200 7/9/13

2/28/14

10/20/14

6/12/15

2/1/16

40

estimate 25 million bushels, adding to the ending stocks estimate in the report. The new monthly grind reports are suggesting the efficiency of converting corn to ethanol is better than previously believed. CONAB increased Brazil’s corn production too. The forecasters’ 1.6 million metric ton increase to 80.2 million metric tons implies more

30 20 10 0 -10 Basis Chicago Futures

-20 7/18/14

10/8/14

12/30/14

3/24/15

6/12/15

competition for the United States in the world corn trade. China is said to be cutting the state corn support price for the coming year.

1750

Central IL Daily Cash Soybeans 1550

16- to 18-week cycle lows

1350

1150

950

The recent low not only looks like the most recent 16- to 18-week low, but it also may have ended the correction off last December's high. Even though prices might have minor slippage after the most recent small rally, technical indicators suggest the short-term trend may have turned up.

A close over $9.60(prices are currently at $9.50) would position the Central Illinois cash price to challenge $10 again, and maybe $10.40 if it closes over $10. Downside risk should be contained by $9.20-$9.25.

750 7/9/13

2/28/14

3-year low

10/20/14

knew: demand remains better than expected. There’s reason to think the USDA might increase these forecasts a little more before the crop year ends. If the June 30 stocks report confirms the December and March reports, the USDA might have to raise its residual number, cutting ending stocks forecasts a little more. New-crop forecasts are still abundant, but the weather has

6/12/15

2/1/16

400

300 200 100 0 Basis Chicago Futures

-100 7/18/14

10/8/14

12/30/14

3/24/15

6/12/15

started to raise the possibility some acreage may shift to the prevent plant category.

Iowa Corn & Soybean Basis $3.37 NC $3.34 -0.20 -0.23 $3.36 SC $3.35 -0.21 -0.22

NE

$3.34 -0.23 SE $3.36 -0.21

SOYBEANS: (basis vs. July futures, 6/10/15)

NW $9.14 -0.35 SW $9.26 -0.23

NC

$9.17 -0.32 SC $9.25 -0.24

NE $9.27 -0.22 SE $9.36 -0.13

Neither AgriVisor LLC nor the Iowa Farm Bureau Federation is liable for any damages that anyone may sustain by reason of inaccuracy or inadequacy of information provided herein, any error of judgment involving any projections, recommendation or advice or any other act of omission. This publication is owned by the Iowa Farm Bureau Federation with advice provided by and copyrighted by AgriVisor Services LLC, 1701 Towanda Avenue, Bloomington, Ill., 61701. No reproduction of any material in whole or in part of this page may be made without written consent.

5-Year Avg.

200

Corn prices appear to be coming to the end of the correction that has been underway since late December. There is a chance the cash price could dip to one more new low before the 40-week cycle bottoms, and that should come soon, if it already hasn't. Based on the current low, the primary objective for the next move up is close to $4.50, but prices may do well to reach $3.80-$3.90 by summer's end. Support is good at $3.25-$3.35.

400

continue to find support from strong demand. Technical features are pointing to higher levels in the next few weeks. Better marketing opportunities are expected for remaining sales.

2015 CROP: New-crop futures are finding diminished selling interest as they approach $9, implying a bumper crop may already be priced into the market. Hold off making sales at this time.

Cycle Lows 20-week 40-week

500

SOYBEAN STRATEGY

NW SW

800

0 5/28/15

600

CORN: (basis vs. July futures, 6/10/15)

1200

2015

12-23-13 — 10% sold @ $11.72

12-31-13 — 10% sold @ $11.35

5-27-14 — 15% sold @ $12.07

2-18-14 — 10% sold @ $11.38

3-3-14 — 10% sold @ $11.72

5-12-14 — 10% sold @ $12.23

85% unsold

6-2-14 — 10% sold @ $12.24

FUNDAMENTALS:  The new

USDA’s increase in its old-crop crush and export forecasts only confirmed what the trade already

5-Year Avg.

cyclic parameters, the long-term technical outlook suggests better prices should come. Hold off making sales.

F U N D A M E N TA L S :   T h e

800

200

Central IL Daily Cash Corn 700

the picture still looks weak, but technical indicators suggest prices are ripe for a turn. Even though the marketing year window is shrinking, we still see better opportunities coming. Hold off making sales. We think it’s smart to lock up basis on remaining inventories.

1000

400

Cash Strategist Hotline: 1-309-557-2274

2014 CROP: Fundamentally,

2015 CROP: Given the larger

11

800

2014 CROP: Old-crop futures

1500 1250

CORN STRATEGY

JUNE 17, 2015

40% unsold

Iowa Farm Bureau members have free 24/7 access to AgriVisor daily updates through the Members portion of the IFBF website: www. iowafarmbureau.com. The AgriVisor link is on the homepage under the Daily Market chart.

United States to start importing eggs The United States will soon allow imported egg products from the Netherlands to be used for commercial baking and in processed foods to help ease egg shortages caused by the widespread avian influenza outbreak, the Associated Press reported last week. The United States hasn’t bought eggs from a European nation in more than a decade. Generally, the United States produces enough eggs to meet domestic supply and export more than 30 million dozen eggs a month to trade partners including Mexico and Canada, the largest buyers. But the H5N2 virus — which began to spread widely through Midwest farms in the early spring, including in Iowa, the nation’s largest egg producer — has killed nearly 47 million birds. About 35 million were egg-laying hens that provided 80 percent of the eggs for the breaker market — eggs broken then liquefied, dried or frozen to be

used in processed foods like mayonnaise and pancake mixes or sold to bakeries to make cakes, cookies and other products. Because there are fewer chickens laying eggs, one-third of the supply for companies buying egg products has disappeared in just a few weeks. “Our members are not able to get their hands on enough eggs to continue their production. It’s very much a crisis for us right now,” said Cory Martin, director of government relations for the American Bakers Association, a trade group representing wholesale bakeries. Prices for egg products used by food manufacturers and bakeries jumped more than 200 percent in the past month, and some large bakeries have been forced to buy eggs by the carton and crack them individually to continue production, Martin said. Only Canada has been certified to sell liquid, dried and frozen

egg products to U.S. companies in recent years. But with manufacturers scrambling, the USDA’s Food Safety and Inspection Serv­ ice (FSIS), which oversees importation of egg products, announced the Netherlands again had been approved to export to the United States — something it hasn’t done since 2002. Five egg processors in the Netherlands, which had been ap­­ proved initially in 1987 but saw its certification expire, will begin selling to U.S. companies as soon as export certificate language details can be worked out, FSIS spokesman Adam Tarr said. The number of Iowa avian flu cases has slowed in recent weeks. Iowa has a total of 73 infected sites totaling more than 29 million head of poultry, according to the Iowa Department of Agriculture and Land Stewardship. The total includes 24 million layers, 3.8 million pullets and 1.2 million turkeys.


12

JUNE 17, 2015

IOWA FARM BUREAU SPOKESMAN

NO SUBSTITUTE FOR SCOUTING You can’t fix problems in your fields if you don’t know what’s out there. Scout your fields once a week to check for stand issues, insects, diseases and weeds. Here are a few tips:

1

Walk your fields. While drive-by scouting is faster, this method won’t allow you to see problems until it’s likely too late to stop the damage. Check several areas of the field as problems in one section may or may not be present in others.

2

What should you look for? At the early stages of soybean growth, look for issues with population or plant stands. It may not be too late to replant those spots. As the growing season progresses, be on the lookout for diseases, insects and weeds.

3

When you do find a problem, don’t be tempted to manage all your fields the same way. Treating fields on an individual basis may prevent you from applying unnecessary treatments. As most farmers face smaller profit margins this year compared with recent years, this individualized treatment can make a big difference on your bottom line.

Iowa Corn Board elections set for July 21 Elections for the Iowa Corn Promotion Board (ICPB) will be held on July 21. Iowa corn growers elect peers to serve on the ICPB to oversee the investment of funds generated by the Iowa corn checkoff. Corn farmers in crop reporting districts 4 (west-central), 5 (central), 8 (south-central) and 9 (southeastern) can vote at their local county extension office for their representation on the ICPB for a three-year term. Anyone who has produced and marketed 250 bushels of corn or more in Iowa in the previous marketing year is eligible to vote in the election. Producers unable to visit the

extension office on July 21 may vote by absentee ballot. Absentee ballots are available by request until June 29 by contacting the Iowa Corn office at (515) 225-9242 or iowacorn.org. Absentee ballots must be postmarked no later than July 21. The candidates are: District #4 (Woodbury, Ida, Sac, Calhoun, Monona, Crawford, Carroll, Greene, Harrison, Shelby, Audubon and Guthrie counties) • Larry Buss, Harrison County • Brent Drey, Sac County District #5 (Webster, Hamilton, Hardin, Grundy, Boone, Story, Marshall, Tama, Dallas, Polk,

SEED QUALIT Y

District #8 (Madison, Warren, Marion, Union, Clarke, Lucas, Monroe, Ringgold, Wayne and Appanoose counties) • Don Hunerdosse, Warren County • Corwin Fee, Marion County District #9 (Mahaska, Keokuk, Washington, Louisa, Wapello, Jeff­ erson, Henry, Des Moines, Davis, Van Buren and Lee counties) • Lance Bell, Washington County • Wayne Humphreys, Louisa County

G a ra g e s | E q u i n e | Fa r m S t o ra g e | H o bby S h o p s | C a b i n s

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©2015 United Soybean Board.

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